Domesday Live

Where does my tax go?

Most of the government's money comes from income tax, National Insurance and VAT. Most of what it spends goes on benefits and pensions, the NHS, schools, and interest on past borrowing. Roughly a quarter of spending is benefits and pensions, and a tenth of what is collected goes on debt interest.

Why it happens

• Where it comes from. Income tax on pay, National Insurance, VAT and corporation tax are the biggest. Council tax, business rates and fuel duty add the rest.
• Where it goes. Benefits and pensions are the largest single part. Then come health, education, defence, police and local services, plus interest on the national debt.
• More is spent than collected. The government spends more than it collects most years, borrowing the difference. That adds to the debt, and the interest on it.